HomeMy WebLinkAboutA004 - Council Action Form dated February 28, 2012 P
ITEM # 9
DATE: 02/28/12
COUNCIL ACTION FORM
SUBJECT: PUBLIC HEARING AND NOTICE OF INTENT TO ISSUE $13,150,000
ESSENTIAL CORPORATE PURPOSE GENERAL OBLIGATION BONDS
AND ASSOCIATED TAX LEVY FOR DEBT SERVICE
BACKGROUND:
The final FY 2012/13 budget includes a number of General Obligation (GO) Bond funded
capital improvements. A public hearing is required to authorize issuance of bonds and the
levy of property taxes for debt to be issued. The dollar amounts and corresponding
property tax levy for the planned GO bond issue are included as part of the FY 2012/13
budget.
The GO Bonds debt service levyand anticipated utility rates included with the FY 2012/13
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budget were based on a total debt issuance amount of $17,365,500. A public hearing is not
required for the $4.5 million Library portion of the planned issue, since this amount was
already approved by referendum. This brings the issuance amount for the public hearing
down to $13,150,000. Council is also asked to authorize up to an additional $284,500 in
bonds to allow for cost adjustments, issuance costs, and bids for bonds at a premium.
Bonds will not be issued in an amount where debt service will exceed the approved debt
service levy. Council authorization will be required at a later date to authorize the sale of
the FY 2012/13 General Obligation Bonds. Bonds will not be issued until the respective
projects advance and are ready for funding.
The Capital Improvements Plan's 2012/13 GO Bond Issue will include the following:
Woodview Drive Water& Sewer Project $ 357,000
Extension of Utilities East 4,300,000
Extension of Utilities North 1,401,000
Debt abated by utility revenues: $ 6,058,000
Flood Response & Mitigation Projects 820,000
Collector Street Pavement Improvements 850,000
Asphalt Street Reconstruction Program 928,000
CyRide Route Pavement Improvements 1,420,000
Arterial Street Pavement Improvements 219,000
Concrete Pavement Improvements 600,000
Downtown Street Improvements 950,000
Asphalt/Seal Coat Street Rehabilitation 620,500
Squaw Creek Footbridge 400,000
Essential Corporate Purpose Debt
covered by property taxes: $ 6,807,500
Sub-total — Essential Corporate Purpose Debt $12,865,500
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Library Expansion/Renovation (Previously
approved by voter referendum) $ 4,500,000
Grand Total —2012/13 GO Issue: $17.365.500
ALTERNATIVES:
1. Adopt a pre-levy resolution authorizing the issuance of Essential Corporate Purpose
General Obligation Bonds in an amount not to exceed $13,150,000 and the debt service
property tax levy to pay principal and interest on the bonds and set the date of public
hearing for March 6, 2012.
2. Reject the pre-levy resolution authorizing the issuance of Essential Corporate Purpose
General Obligation Bonds, reduce the 2012/13 property tax levy, and delay the capital
projects. Rejection of the Essential Corporate Purpose Bonds will prevent the City from
completing the bond funded projects reflected in the 2012/13 CIP.
MANAGER'S RECOMMENDED ACTION:
Prior to the issuance of this debt, state law requires that this pre-levy resolution be adopted.
This is a required step in order to accomplish the Council's approved capital improvements
for the upcoming fiscal year.
Therefore, it is the recommendation of the City Manager that the City Council adopt
Alternative No. 1, thereby adopting a pre-levy resolution authorizing the issuance of
Essential Corporate Purpose General Obligation Bonds in an amount not to exceed
$13,150,000 and the debt service property tax levy to pay principal and interest on the
bonds and set the date of public hearing for March 6, 2012.
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